WASHINGTON -- The U.S.-India Business Council (USIBC) today hailed
India's progress in advancing major economic reforms with the
Cabinet's approval of opening India's multi-brand retail
sector to foreign direct investment (FDI), and increasing equity caps in
civil aviation, broadcasting, and power trading exchanges. The
government's courageous resolve to move on these complex reforms
serves as an assurance to investors that its economic liberalization agenda is back on track.

"The reforms approved by the Cabinet today are a welcome signal
to investors everywhere. The U.S.-India Business Council applauds the
government's bold actions that will help create a predictable
investment and business climate," said Ajay Banga, Chairman of
USIBC's Board of Directors. Mr. Banga is President & CEO of
MasterCard Worldwide.

"Opening the multi-brand retail sector to foreign direct
investment will drive the modernization of India's expansive
agri-retail marketplace. India's supply chain infrastructure will
see improved efficiencies and expertise, consumers will benefit from
increased quality and choice, and inflation and rising food costs will
be tamed," said Ron Somers, President of USIBC. "These big
bang reforms send a crystal clear signal that India is open for
business."

The government of India's decision to allow foreign carriers to
buy a 49% stake in Indian private airlines comes at a crucial time
following heavy losses borne by many of India's carriers this past
fiscal year. Raising the equity cap presents an opportunity for U.S.
carriers to be a part of India's remarkable growth in passenger
traffic over the next decade.

FDI in all broadcast-carriage services has been raised to 74% from
49% previously. USIBC believes this will provide industry with the
leverage it needs to help fund India's digitization plan.

USIBC further welcomes the decision to permit foreign investment of
up to 49% in power trading exchanges. India's power exchanges will
benefit from the introduction of global best practices, new technology,
and capital infusions, which will facilitate the transfer of power from
surplus to deficit regions and improve grid stability and
reliability.

"This is a win-win for everyone," said Mr. Banga.

The U.S.-India Business Council (USIBC) is the premier business
advocacy organization formed by the U.S. and Indian governments in 1975
whose purpose is to deepen two-way trade and strengthen commercial ties.
Today, USIBC is comprised of 350 top-tier U.S. and Indian companies.

www.usibc.com

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